Gilead Sciences Underperforms Nasdaq Despite Q2 Beat, Strong Analyst Consensus

Gilead Sciences' stock has underperformed the Nasdaq Composite over the past three months, rising 3.4% compared to the index's 10.8% surge. However, over the longer term, the pharma giant's performance has been more impressive, with a 22.3% YTD gain and a 41.8% surge over the past 52 weeks. The stock has consistently traded above its 200-day moving average and has a "Strong Buy" consensus rating with a mean price target of $126.33, suggesting an 11.8% upside potential.

Gilead Sciences Inc. (GILD), a prominent biopharmaceutical company, has seen its stock underperform the Nasdaq Composite over the past three months. While the stock has risen by 3.4%, the Nasdaq Composite surged by 10.8% during the same period [1]. However, over the longer term, Gilead Sciences' performance has been more impressive. The stock has gained 22.3% year-to-date (YTD) and 41.8% over the past 52 weeks [1].

Despite the recent underperformance, Gilead Sciences' stock has consistently traded above its 200-day moving average over the past year and above its 50-day moving average since late May [1]. This indicates a strong bullish trend. Analysts have given the stock a "Strong Buy" consensus rating with a mean price target of $126.33, suggesting an 11.8% upside potential from current price levels [1].

The company's recent quarterly results, released on August 7, 2025, showed mixed performance. The company's topline inched up 1.8% year-over-year to $7.1 billion, driven by higher sales of HIV, Livdelzi (seladelpar), and Trodelvy (sacituzumab govitecan-hziy) medications. However, lower sales of chronic hepatitis C virus ("HCV") and Veklury (remdesivir) offset these gains. The adjusted earnings per share (EPS) remained steady at $2.01, surpassing the Street's expectations by 3.1% [1]. This quarterly performance suggests that while Gilead Sciences is facing challenges in certain areas, it remains well-positioned in the biopharmaceutical sector.

Gilead Sciences' stock price has experienced volatility, with a significant surge of 8.3% in the trading session following the release of its better-than-expected Q2 results. The stock has since pulled back, reflecting the market's cautious approach to the company's near-term outlook [1].

Looking ahead, Gilead Sciences faces a complex landscape of market dynamics, regulatory hurdles, and evolving treatment paradigms. The company's HIV franchise, while a cornerstone of its business, has faced challenges with the launch of its new HIV pre-exposure prophylaxis (PrEP) medication, Yeztugo. The company's oncology franchise, however, presents significant growth potential, with analysts expecting this segment to drive future growth and valuation expansion [2].

References:
[1] https://finance.yahoo.com/news/gilead-sciences-stock-underperforming-nasdaq-065718765.html
[2] https://www.investing.com/news/swot-analysis/gilead-sciences-swot-analysis-hiv-giant-faces-challenges-oncology-promise-93CH-4218215